Obama Wants to Fund Retirement with Borrowed Money By: Curtis Ophoven 6/18/2008 - 6 Comments This is just unbelievable. Barack Obama has proposed to help families save for retirement by borrowing money from the next generation. Your Ad Here This would be a great idea, if the government had any money to give.  But they don’t, if fact they own 9.4 trillion dollars to the rest of the world.  Yet people are excited about this idea. If you read the details of this proposal, Obama wants to help people increase their saving for retirement by forcing small businesses to automatically enroll their workers into a 401k plan which the government will then help fund. The plan calls for the government to match the first $500 put into a retirement account. Small businesses don’t like the idea, workers don’t like the idea and the next generation is not going to like the idea – yet it is being proposed by the leading Democratic Presidential candidate. When are the politicians going to realize that the US government doesn’t have any more money to spend?  The national debt is already $531,000 per family. The government has three ways to get money; 1. Taxes 2. Printing money (increasing the money supply) 3. Borrowing (increasing the national debt) Taxes Obama has already said he was going to increase taxes all over the place. What good would it do to take more money away from people so that the government can give it back to people to help increase their retirement investments by $500? Printing money What good would it do to increase the money supply by $500 per family, in order to increase the retirement savings by $500 per family, while increasing inflation of gas and food which will continue to reduce the purchasing power of the dollar – and reduce the value of all savings and retirement accounts? Borrowing What good would it do to increase the national debt by $500 per family, while increasing the retirement investment by $500 per family?  If Obama really wanted to increase saving, he would raise interest rates above inflation, because putting money in a saving account at a lower interest rate than inflation does not make any sense. This idea of Obama’s clearly shows his economic strategy is going to be based on spending. He is going to tax, print money and borrow as much as he can – which will result in an increase in unemployment, inflation and national debt. This is an absolutely ridicules idea. What do you think? Related Articles McCain Vows to Fight Spending as Recession Looms Top 10 Recession Proof Jobs Who Should Provide Financial Education? Why Do We Need Savings? How Inflation Will Change Things   Subscribe via RSS Copyright © 2010 PennyJobs.com. All rights reserved. << FREE >> Weekly Newsletter... Signup today and start receiving our free weekly newsletter! Reader Comments Comment 1 Maggie Says: on Wednesday, June 18, 2008 10:29:16 AM I think he's going to get elected anyway-!!! Comment 2 Curt Says: on Thursday, June 19, 2008 8:19:38 AM @Maggie - I'm not so sure about that. It's going to be a close race. Obama is one of the most liberal congressman with a history of spending money. The economy is going to be a big issue as the stock market sinks it will only add to the economic pain. Comment 3 Dough Roller Says: on Wednesday, June 25, 2008 6:16:50 PM The amazing thing about Obama's proposal is that the $500, while perhaps better than nothing, won't solve the problem. It's a political gimmick that our grandchildren will pay for. Comment 4 A Moss Says: on Thursday, July 24, 2008 1:01:56 AM Social Security has always been funded by the current generation, so a retirement funded by current taxpayers vs. a savings plan is not new. Our tax code has also long been used to guide citizens into doing what the government wants - mortgage interest deductions, energy tax breaks etc. That is the history of our tax code. This is just another way of giving an incentive for Americans to save more. It is not just a tax refund or "economic stimulus package" where you get something for doing nothing (Yes, I thoroughly enjoyed my $2100, thank you), but rather a match for the taxpayer doing what would be better for the country in the long run - saving. Since most 401Ks are set up as a deduction from the paycheck that first $500 will get matched, but after that you are just saving, and most people wouldn't stop the deduction. I agree that there's no money to pay for it, but there wasn't for the $2100 I got either and the $500 would have a much longer lasting impact. Comment 5 Kat Engel Says: on Wednesday, April 01, 2009 3:20:30 AM When will the people see that there's a fox in the henhouse and he ain't planning on just being friends. This man does not have the experience to tie his shoes let alone be the leader of the free world. My husband and I are getting ready to retire, but the excitement has gone out of it because Obama will probably spread that wealth around too so we will have to work until we are 90. I have always believed that in order to be president, you should serve a term in this nations military. You get plenty of discipline and learn the hard way what it's all about. The only presidents I know of who didn't serve in the military are the draft dodger Clinton and the "what the heck is going on" Obama. Write a Comment Please keep comments civil and on-topic. Abusive or inappropriate comments will be removed without warning.  Name (required)     Email Address (required)     Website URL  Comment

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